PUBLISHED
OPINION
Case No.: 94-2285
† Petition for Review filed
Complete Title
of Case:
93-CV-006741
Daniel Markweise, Bonnie Markweise,
individually and as Guardian for
Steven Douglas Raymond Pallo and
Wayne Murphy,
Plaintiffs-Respondents,
†
v.
Peck Foods Corporation and Northbrook
Property and Casualty Insurance,
Defendants,
City of Milwaukee and City of Milwaukee
Department of Public Works,
Defendants-Appellants.
---------------------------------------------
93-CV-012419
Darin Gaines, William Lorenzen, Elaine Forster,
Herb Faude, Robert Zokan, Luann Emanuele, Carlo
Emanuele, and for their minor child Joseph
Emanuele, minor, Joseph Zaborski and all
other persons similarly situated,
Plaintiffs-Respondents,
v.
City of Milwaukee and
Department of Public Works,
Defendants-Appellants,
State of Wisconsin, Howard Avenue Water
Purification Plant, Water Department and
Common Council,
Defendants.
---------------------------------------------
93-CV-013851
Julette M. Murphy,
Plaintiff-Respondent,
v.
City of Milwaukee,
Defendant-Appellant.
---------------------------------------------
93-CV-013852
James J. Rudek, as Special Administrator for
The Estate of Sophia Rudek,
Plaintiff-Respondent,
v.
City of Milwaukee,
Defendant-Appellant.
---------------------------------------------
93-CV-015946
Earl L. Davis, Christella Evans,
Rita Cumi Coulter and Latissha Coulter,
Plaintiffs-Respondents,
v.
City of Milwaukee,
Defendant-Appellant.
---------------------------------------------
94-CV-000370
Connie Mahos,
Plaintiff-Respondent,
v.
City of Milwaukee,
Defendant-Appellant.
---------------------------------------------
94-CV-004783
Gloria Bowie,
Plaintiff-Respondent,
v.
City of Milwaukee,
Defendant-Appellant,
Donna Shalala, Secretary of the Department
of Health and Human Services,
Defendant.
---------------------------------------------
94-CV-005844
Darlene Quandt, Colleen Bornemann,
individually and as Guardian of Bridget
Bornemann, Corrine Dotz, Susan Galioto,
Mavis Ornelas, James Marcou, Kathleen Mitby,
Margaret Heddleson, Kenneth Scott, Shirley
Terlizzi, Timothy Nelson, individually and as
Guardian of Matthew Nelson, Kevin Corcoran,
Robert Jaeger, Keith Kaufman, Beverly Swanson,
Nancy Lepre, Trisha Urbanski, George Mlinar,
Kim Kendziora, individually and as Guardian of
Shawn Kendziora, Donald Gieryn, Rick Kroboth,
James Sciano, Jon Stanczyk, Joseph Kehrer,
Lisa Ranz, Sandra Kay, Mark Shepard,
Thomas Mitchell, Georgia Mueller, Donna Kukla,
Albert Fell, Jill Goodavish, Tracy Hunley,
Linda Caraway, Erik Rentmeester, Alan Bertolas,
Thomas Browne and Louise Noyes,
Plaintiffs-Respondents,
v.
Northbrook Property and Casualty Insurance
Company, Peck Foods Corporation, City of
Wauwatosa, a municipal corporation, City of
West Allis, a municipal corporation,
Village of Hales Corners, a municipal
corporation, City of New Berlin, a municipal
corporation, City of St. Francis, a municipal
corporation, Village of Greendale, a municipal
corporation, and The Grand Milwaukee Hotel,
Defendants,
City of Milwaukee, a municipal corporation,
Defendant-Appellant,
General Chemical Corporation,
Defendant-Co-Appellant.
---------------------------------------------
94-CV-006765
Sandra Strohkirch and
Dennis Strohkirch, her husband,
Plaintiffs-Respondents,
PrimeCare Health Plan, Inc., a Wisconsin
Health Maintenance Organization,
Involuntary Plaintiff,
v.
Peck Foods Corporation and Northbrook
Property and Casualty Insurance Company,
a foreign fire and casualty company,
Defendants,
City of Milwaukee, a municipal corporation and
City of Milwaukee Department of Public Works,
Defendants-Appellants.
---------------------------------------------
94-CV-006767
James P. Greenwood,
Plaintiff-Respondent,
Blue Cross & Blue Shield United of Wisconsin,
a Wisconsin Blue Plan,
Involuntary Plaintiff,
v.
Peck Foods Corporation and Northbrook
Property and Casualty Insurance Company,
a foreign fire and casualty company,
Estate of Julie A. Drews, by Janet G. Drews and
Janet G. Drews, mother of Julie A. Drews,
Plaintiffs-Respondents,
v.
A & H Administrators,
Involuntary-Plaintiff,
v.
Peck Foods Corporation and Northbrook Property and
Casualty Insurance Company,
Defendants,
City of Milwaukee, a municipal corporation and
City of Milwaukee Department of Public Works,
Defendants-Appellants.
Oral Argument: May
22, 1996
COURT COURT
OF APPEALS OF WISCONSIN
Opinion Released: July
23, 1996
Opinion Filed: July 23, 1996
Source of APPEAL Appeal
from an order
Full Name JUDGE COURT: Circuit
Lower Court. COUNTY: Milwaukee
(If “Special”, JUDGE: WILLIAM D. GARDNER
so indicate)
JUDGES: Wedemeyer,
P.J., Fine and Schudson, JJ.
Concurred: Fine and Schudson, JJ.
Dissented: Wedemeyer, P.J.
Appellant
ATTORNEYSOn behalf of
the defendants-appellants, the cause was submitted on the briefs of Grant F.
Langley, city attorney, of Milwaukee, and Frank L. Steeves of Crivello,
Carlson, Mentkowski & Steeves, S.C., of Milwaukee. There was oral argument by Frank L.
Steeves.
On behalf of the defendant-co-appellant,
the cause was submitted on the briefs of Frank J. Daily and Christopher
H. Kallaher of Quarles & Brady, of Milwaukee. There was oral argument by Christopher H.
Kallaher.
Respondent
ATTORNEYSOn behalf of
the defendant-respondent Northbrook Property and Casualty Insurance Company,
the cause was submitted on the briefs of Michael W. Morrison of Tressler,
Soderstrom, Maloney & Priess, of Chicago; and Dennis L. Fisher
of Meissner & Tierney, S.C., of Milwaukee.
On behalf of the plaintiffs-respondents,
the cause was submitted on the briefs of Lawrence Walner, James B.
Goldberg, and Kristi L. Browne of Lawrence Walner & Assoc.,
Ltd., of Chicago; Richard J. Steinberg of Steinberg Law Offices,
of Brookfield; Michael P. Cascino
and Robert McCoy of Cascino Vaughan Law Offices, of Chicago; and Michael
A. Pollack of Cascino Vaughan Law Offices, of Milwaukee. There was oral argument by Kristi L.
Browne and Lawrence Walner.
AMICUS
CURIAEAmicus
Curiae brief was filed by Kent I. Carnell and James A. Olson of Lawton
& Cates, S.C., of Madison, for the Wisconsin Academy of Trial Lawyers.
COURT OF APPEALS DECISION DATED AND RELEASED July 23, 1996 |
NOTICE |
A party may file with the
Supreme Court a petition to review an adverse decision by the Court of
Appeals. See § 808.10 and
Rule 809.62, Stats. |
This opinion is subject to
further editing. If published, the
official version will appear in the bound volume of the Official Reports. |
No. 94-2285
STATE
OF WISCONSIN IN COURT OF
APPEALS
93-CV-006741
Daniel Markweise,
Bonnie Markweise,
individually and as
Guardian for
Steven Douglas Raymond
Pallo and
Wayne Murphy,
Plaintiffs-Respondents,
v.
Peck Foods Corporation
and Northbrook
Property and Casualty
Insurance,
Defendants,
City of Milwaukee and
City of Milwaukee
Department of Public
Works,
Defendants-Appellants.
---------------------------------------------
93-CV-012419
Darin Gaines, William
Lorenzen, Elaine Forster,
Herb Faude, Robert
Zokan, Luann Emanuele, Carlo
Emanuele, and for
their minor child Joseph
Emanuele, minor,
Joseph Zaborski and all
other persons
similarly situated,
Plaintiffs-Respondents,
v.
City of Milwaukee and
Department of Public
Works,
Defendants-Appellants,
State of Wisconsin,
Howard Avenue Water
Purification Plant,
Water Department and
Common Council,
Defendants.
---------------------------------------------
93-CV-013851
Julette M. Murphy,
Plaintiff-Respondent,
v.
City of Milwaukee,
Defendant-Appellant.
---------------------------------------------
93-CV-013852
James J. Rudek, as
Special Administrator for
The Estate of Sophia
Rudek,
Plaintiff-Respondent,
v.
City of Milwaukee,
Defendant-Appellant.
---------------------------------------------
93-CV-015946
Earl L. Davis,
Christella Evans,
Rita Cumi Coulter and
Latissha Coulter,
Plaintiffs-Respondents,
v.
City of Milwaukee,
Defendant-Appellant.
---------------------------------------------
94-CV-000370
Connie Mahos,
Plaintiff-Respondent,
v.
City of Milwaukee,
Defendant-Appellant.
---------------------------------------------
94-CV-004783
Gloria Bowie,
Plaintiff-Respondent,
v.
City of Milwaukee,
Defendant-Appellant,
Donna Shalala,
Secretary of the Department
of Health and Human
Services,
Defendant.
---------------------------------------------
94-CV-005844
Darlene Quandt,
Colleen Bornemann,
individually and as
Guardian of Bridget
Bornemann, Corrine
Dotz, Susan Galioto,
Mavis Ornelas, James
Marcou, Kathleen Mitby,
Margaret Heddleson,
Kenneth Scott, Shirley
Terlizzi, Timothy
Nelson, individually and as
Guardian of Matthew
Nelson, Kevin Corcoran,
Robert Jaeger, Keith
Kaufman, Beverly Swanson,
Nancy Lepre, Trisha
Urbanski, George Mlinar,
Kim Kendziora,
individually and as Guardian of
Shawn Kendziora,
Donald Gieryn, Rick Kroboth,
James Sciano, Jon
Stanczyk, Joseph Kehrer,
Lisa Ranz, Sandra Kay,
Mark Shepard,
Thomas Mitchell,
Georgia Mueller, Donna Kukla,
Albert Fell, Jill
Goodavish, Tracy Hunley,
Linda Caraway, Erik
Rentmeester, Alan Bertolas,
Thomas Browne and
Louise Noyes,
Plaintiffs-Respondents,
v.
Northbrook Property
and Casualty Insurance
Company, Peck Foods
Corporation, City of
Wauwatosa, a municipal
corporation, City of
West Allis, a
municipal corporation,
Village of Hales
Corners, a municipal
corporation, City of
New Berlin, a municipal
corporation, City of
St. Francis, a municipal
corporation, Village
of Greendale, a municipal
corporation, and The
Grand Milwaukee Hotel,
Defendants,
City of Milwaukee, a
municipal corporation,
Defendant-Appellant,
General Chemical
Corporation,
Defendant-Co-Appellant.
---------------------------------------------
94-CV-006765
Sandra Strohkirch and
Dennis Strohkirch, her
husband,
Plaintiffs-Respondents,
PrimeCare Health Plan,
Inc., a Wisconsin
Health Maintenance
Organization,
Involuntary Plaintiff,
v.
Peck Foods Corporation
and Northbrook
Property and Casualty
Insurance Company,
a foreign fire and
casualty company,
Defendants,
City of Milwaukee, a
municipal corporation and
City of Milwaukee
Department of Public Works,
Defendants-Appellants.
---------------------------------------------
94-CV-006767
James P. Greenwood,
Plaintiff-Respondent,
Blue Cross & Blue
Shield United of Wisconsin,
a Wisconsin Blue Plan,
Involuntary Plaintiff,
v.
Peck Foods Corporation
and Northbrook
Property and Casualty
Insurance Company,
a foreign fire and
casualty company,
Estate of Julie A.
Drews, by Janet G. Drews and
Janet G. Drews, mother
of Julie A. Drews,
Plaintiffs-Respondents,
v.
A & H Administrators,
Involuntary-Plaintiff,
v.
Peck Foods Corporation
and Northbrook Property and
Casualty Insurance
Company,
Defendants,
City of Milwaukee, a
municipal corporation and
City of Milwaukee
Department of Public Works,
Defendants-Appellants.
APPEAL from an order of
the circuit court for Milwaukee County:
WILLIAM D. GARDNER, Judge. Reversed
in part and cause remanded.
Before Wedemeyer, P.J.,
Fine and Schudson, JJ.
FINE, J. This is an interlocutory appeal by the City
of Milwaukee and General Chemical Corporation from an order entered by the
trial court certifying as a class under Rule
803.08, Stats., all persons who
claim or who may claim before these cases are concluded to have been injured by
the cryptosporidium infestation of some of Milwaukee's drinking water in 1993.[1] The City argues that the certification
order's inclusion of those claimants and potential claimants who have not
complied with § 893.80, Stats.,
is improper. We agree. At oral argument, General Chemical contended
that the certification threatened to deprive the defendants of their right to a
jury trial guaranteed by Article I, § 5 of the Wisconsin
Constitution. We remand to the trial
court for further consideration of this issue.
1. The
City of Milwaukee. Section
62.25(1), Stats., provides: “No action may be brought or maintained
against a city upon a claim or cause of action unless the claimant complies
with s. 893.80.” As material here, §
893.80(1), Stats., provides:
Except as provided in subs. (1m) and
(1p), no action may be brought or maintained against any [government entity]
... unless:
(a) Within
120 days after the happening of the event giving rise to the claim, written
notice of the circumstances of the claim signed by the party, agent or attorney
is served on the [government entity] ....
Failure to give the requisite notice shall not bar action on the claim
if the [government entity] had actual notice of the claim and the claimant
shows to the satisfaction of the court that the delay or failure to give the
requisite notice has not been prejudicial to the [government entity].[2]
The
class-action procedure authorized by Rule
803.08, Stats., does not trump
this notice requirement. Carpenter
v. Racine Comm'r of Pub. Works, 115 Wis.2d 211, 215–217, 339 N.W.2d
608, 610 (Ct. App. 1983), cert. denied, 466 U.S. 904.
Notices purporting to
comply with § 893.80(1)(a), Stats.,
were filed by the class on behalf of named persons, who were alleged to have
suffered damages as a result of the cryptosporidium infestation, and “other
persons similarly situated.” This
reference to persons as of yet unidentified does not satisfy the “written
notice of the circumstances of the claim” requirement of § 893.80(1)(a). See
Hicks v. Milwaukee County, 71 Wis.2d 401, 407, 238 N.W.2d 509,
513–514 (1976) (notice presenting “multiple claims” must “identify the
claimants and show that the claims are being made by their authority”); see
also Carpenter, 115 Wis.2d at 216–217, 339 N.W.2d at 610.
The plaintiffs argue
that even if the notices that were filed on behalf of the unknown members of
the class did not satisfy § 893.80(1)(a), Stats.,
the City had “actual notice” within the meaning of § 893.80(1)(a)'s savings
clause: “Failure to give the requisite
notice shall not bar action on the claim if [the government entity] had actual
notice of the claim and the claimant shows to the satisfaction of the court
that the delay or failure to give the requisite notice has not been prejudicial
to the [government entity].” We
disagree.
“Section 893.80(1)(a), Stats., is a notice of injury statute,”
designed to “allow governmental authorities to make a prompt investigation of
the circumstances giving rise to a claim.”
Elkhorn Area School Dist. v. East Troy Community School Dist.,
110 Wis.2d 1, 5, 327 N.W.2d 206, 208 (Ct. App. 1982); see also Vanstone
v. Town of Delafield, 191 Wis.2d 586, 593, 530 N.W.2d 16, 19 (Ct. App.
1995) (purpose of § 893.80(1)(a) is to enable entity to “investigate and
evaluate” claim). Thus, it permits
claims to proceed against the designated government entities even though a
claimant has not filed a notice in proper form if the government entity “had
actual notice of the claim and the claimant shows to the
satisfaction of the court that the delay or failure to give the requisite
notice has not been prejudicial” to the entity. Section 893.80(1)(a) (emphasis added).
The term “actual notice”
in § 893.80(1)(a), Stats., “is
the equivalent of actual knowledge.” Elkhorn
Area School Dist., 110 Wis.2d at 5, 327 N.W.2d at 209. Thus, the provision requires that the
government entity not only have knowledge about events for which it may be
liable, but also the identity and type of damage alleged to have been suffered
by a potential claimant. Id.,
110 Wis.2d at 5–6, 327 N.W.2d at 209.[3] Nor could the rule be otherwise, given the
statute's purpose: unless the
government entity has “actual knowledge” of both the claimant and his or her
claim, the investigation and evaluation envisioned by the statute is
impossible. Significantly, in both Hicks
and Carpenter the government entities knew about the
circumstances that were alleged to have caused the harm for which the
plaintiffs sought class-action relief. See
Hicks, 71 Wis.2d at 403, 238 N.W.2d at 511–512 (alleged
overcharging of Huber-law inmates); Carpenter, 115 Wis.2d at 214,
339 N.W.2d at 609 (decision by municipality to not make solid-waste pickups
from residential buildings with five or more dwelling units). Here, although the record indicates that the
City knows about and has investigated the 1993 cryptosporidium infestation, and
that it also knows the identity of some persons who claim injuries as a result
of that infestation even though those persons may not have filed notices under
§ 893.80(1)(a), there is nothing in the record indicating that the City is
aware of all those who have been swept into the Rule 803.08, Stats.,
class.[4] The City cannot investigate and evaluate the
claims of those yet unknown. Moreover,
there is nothing in this record to support a determination that those
prosecuting the class action have shown that the “failure to give the requisite
notice has not been prejudicial” to the City.
See § 893.80(1)(a).
Indeed, there can be no assessment of “prejudice” until the identity of each
claimant is known and the circumstances of his or her claim are explored.
The plaintiffs argue
that even if there has been no compliance with § 893.80(1)(a), Stats., with respect to those members
of the class who are as of yet unknown, compliance with § 893.80(1)(a) was
not required because their action is based, in part at least, on the City's
alleged failure to inspect a drainage connection pipe at an alleged source of
the contamination. This, they contend,
puts them within § 893.80(1p), Stats.,
which, they claim, exempts them from the notice requirement of §
893.80(1)(a). We disagree.
As we have seen, §
893.80(1)(a), Stats., provides,
as material here: “Except as provided in subs. (1m) and (1p), no action may be
brought or maintained against any [government entity] unless:” there is compliance with §§ 893.80(1)(a)
& (b). Section 893.80(1p), Stats., provides:
(1p) No action may be
brought or maintained with regard to a claim to recover damages against any
political corporation, governmental subdivision or agency thereof for the
negligent inspection of any property, premises, place of employment or construction
site for the violation of any statute, rule, ordinance or health and safety
code unless the alleged negligent act or omission occurred after November 30,
1976. In any such action, the time
period under sub. (1) (a) shall be one year after discovery of the negligent
act or omission or the date on which, in the exercise of reasonable diligence
the negligent act or omission should have been discovered.
As
with the analysis of any statute, we must give to § 893.80, Stats., the meaning encompassed by its
words, see DNR v. Wisconsin Power & Light Co., 108
Wis.2d 403, 408, 321 N.W.2d 286, 288 (1982), because those words express its
purpose, see 62 Cases of Jam v. United States, 340 U.S.
593, 596 (1951).
Section 893.80(1p), Stats., does two things. First, it precludes actions based on “the
negligent inspection of any property, premises, place of employment or
construction site for the violation of any statute, rule, ordinance or health
and safety code unless the alleged negligent act or omission occurred after
November 30, 1976.” Second, it sets a
time limit within which to bring such an action. There is nothing in either § 893.80(1) or § 893.80(1p)
that even hints that the notice provisions of §§ 893.80(1)(a) & (b), Stats., are inapplicable to actions
founded on alleged negligent inspection, just as there is nothing in either §
893.80(1) or § 893.80(1m) that suggests that the notice provisions of
§§ 893.80(1)(a) & (b) are inapplicable to medical-malpractice actions.[5] Indeed, the words “[e]xcept as provided in
subs. (1m) and (1p)” indicate that §§ 893.80(1)(a) & (b) are modified by §§
893.80(1m) & (1p) only insofar as the terms of §§ 893.80(1m) &
(1p) conflict with those in §§ 893.80(1)(a) & (b). Significantly, the legislative history of
§ 893.80(1p) reveals that the legislature intended only to ensure a
November 30, 1976, start date for actions based on alleged negligent inspection
and to establish a one-year statute of limitations.[6]
That portion of the
trial court's certification order against the City that includes within the
class those claimants and potential claimants who have not complied with
§ 893.80(1), Stats., is
reversed.
2. Jury-trial
right. Article I, § 5 of the
Wisconsin Constitution provides that “[T]he right of trial by jury shall remain
inviolate, and shall extend to all cases at law without regard to the amount in
controversy.” At oral argument, counsel
for General Chemical argued that the class action procedure, as envisioned by
the plaintiffs, and, apparently, by the trial court, would deprive the
defendants of their right to have their liability to each member of the class
decided by a jury. In rejoinder,
plaintiffs' counsel indicated that she foresaw that any money awarded to the
class would be apportioned to the various claimants by a tribunal constituted
for that purpose by the trial court.
Under that circumstance, of course, the tribunal would have to determine
such issues as causation (did the claimant suffer injury, and, if so, was it
caused by the cryptosporidium infestation) and contributory negligence with
respect to each claimant lining up for his or her share of the money. Although the right-to-jury-trial issue was
not argued in the briefs, and would thus in the usual case be deemed waived, see
In re Estate of Balkus, 128 Wis.2d 246, 255 n.5, 381 N.W.2d 593,
598 n.5 (Ct. App. 1985), the deprivation of the constitutional right to a jury
resulting from the trial court's certification of the class, if in fact there
were such a deprivation, is significant enough for us to consider nevertheless,
see Weichers v. Weichers, 197 Wis. 159, 162, 221 N.W. 733,
734 (1928) (public interest in legal issue may justify appellate review of matter
that might otherwise be deemed waived).
The right to a jury
trial in civil cases that is guaranteed by Article I, § 5 of the
Wisconsin Constitution is substantially similar to that right guaranteed by the
Seventh Amendment to the United States Constitution (“In Suits at common law,
where the value in controversy shall exceed twenty dollars, the right of trial
by jury shall be preserved, and no fact tried by a jury shall be otherwise
re-examined in any Court of the United States, than according to the rules of
the common law.”). The Seventh
Amendment jury-trial right does not apply to the states. Minneapolis & St. Louis R.R. Co.
v. Bombolis, 241 U.S. 211, 217 (1916).
Nevertheless, we may be guided by the federal cases interpreting that
provision. See State v.
Miller, 202 Wis.2d 56, 68-69, 549 N.W.2d 235, 241 (1996) (appropriate
to use “principles and analytical framework developed by the United States
Supreme Court” in cases involving a provision of the United States Constitution
that is similar to the provision of the Wisconsin Constitution under
consideration, unless the Wisconsin Constitution affords greater protections)
(First Amendment); State v. Tompkins, 144 Wis.2d 116, 135, 423
N.W.2d 823, 831 (1988) (Fourth Amendment); cf. Carlson &
Erickson Builders, Inc. v. Lampert Yards, Inc., 190 Wis.2d 650, 665,
529 N.W.2d 905, 910–911 (1995) (antitrust law).
The federal jury-trial
right applies to class actions. Ross
v. Bernhard, 396 U.S. 531, 541 (1970) (dictum). This means that the parties to a
class-action lawsuit have the right to have all “juriable issues” decided by
the same jury. Matter of
Rhone-Poulenc Rorer Inc., 51 F.3d 1293, 1303 (7th Cir. 1995); see
also In re Fibreboard Corp., 893 F.2d 706, 712 (5th Cir.
1990) (questioning, but not deciding, whether defendants in an asbestos
class-action case were being deprived of their right to a jury trial in light
of the many disparate issues of causation and damage).[7] There is no authority that we know that
would permit a different result under the Wisconsin Constitution. Cf. Leverence v. PFS Corp.,
193 Wis.2d 317, 328-330, 532 N.W.2d 735, 739-740 (1995) (in multiple-party
lawsuit that is not brought as a class action, all parties have right to jury
trial under Article I, § 5 of Wisconsin Constitution). Clearly, it would be nigh impossible to have
one jury decide all issues for each member of the class—such a trial
could take years, far beyond the constitution of the most stalwart of our
citizens. This may be the reason why
the Advisory Committee's note to the 1966 amendment to Rule 23(b)(3) of the Federal Rules of Civil Procedure, which
requires a commonality of issues—as does Rule
803.08, Stats.—recognizes that
“[a] `mass accident' resulting in injuries to numerous persons is ordinarily
not appropriate for a class action because of the likelihood that significant
questions, not only of damages but of liability and defenses of liability,
would be present, affecting the individuals in different ways.”
This appeal presents
substantial issues involving the defendants' right to a jury trial under the
Wisconsin Constitution that have not been briefed or, apparently, considered by
the trial court. Accordingly, we remand
to the trial court for an evaluation of if and how the jury-trial right found
in Article I, § 5 of the Wisconsin Constitution affects certification under Rule 803.08, Stats. The trial
court is also to evaluate how our decision that the class may not include those
persons who have not complied with § 893.80, Stats.,
affects whether the class-action procedure remains viable. Until these matters are determined,
consideration of the other issues raised by the City and by General Chemical as
to whether the criteria for certification have been met is premature.
By the Court.—Order
reversed in part, and cause remanded.
No. 94-2285 (C)
SCHUDSON, J. (concurring). In light of the confusion that could result
from the dissenting opinion, I write separately to offer what I hope will be
some helpful clarification.
No authority supports
the Dissent's extraordinary assertion that exposure of “a definable percentage
of the population ... to the contaminated water,” resulting in illness of
“approximately 400,000 persons” establishes “actual notice,” Dissenting slip
op. at 2-3. The “definable percentage”
is dubious and, most certainly, the addition of approximately 398,500 unknown
persons as actual-notice claimants is utterly astounding given that only
about 1,500 actual claimants have been named.
Moreover, the City's
brief and oral argument absolutely refute the Dissent's inexplicable statement
that “[t]he City does not dispute that it had actual notice or that it was not
prejudiced.” Dissenting slip op. at 3.
Of course it does; otherwise these issues would not be here on
appeal. The City, clearly and
logically, has explained that it can not assess its liability or attempt to
resolve the potential claims of approximately 398,500 people, each of whom may
have been damaged differently, when it does not know who they are or what they
say they suffered. Section 893.80, Stats., protects the City from doing
so.
Quoting the trial court
decision at length, the Dissent implies that we have rejected the trial court's
discretionary determination of the class action criteria. We have not. Subject to the trial court's further evaluation of the issues
involving the defendants' right to a jury trial, our decision
renders: (1) consolidated actions by about 1,500 persons
against the defendants; and (2) a potential class action on behalf of
about 400,000 persons against the non-City defendants. Our decision requires the trial court to
continue its good efforts to analyze challenging issues and determine whether
and how this complex litigation may be pursued through class action.
I am authorized to state
that Judge Ralph Adam Fine joins in this concurring opinion.
No. 94-2285(D)
WEDEMEYER, P.J. (dissenting). I write separately because I respectfully
disagree with the majority's conclusions.
I would affirm both the trial court's decision that the notice of claim
statute, § 893.80, Stats.,
was satisfied, as well as the trial court's discretionary decision to
conditionally certify the class.
A. Section
893.80, Stats.
I agree that under Hicks
and Carpenter, the class cannot demonstrate that it satisfied the
express notice provisions of the class action statute.[8] However, neither Hicks nor Carpenter
addressed the actual notice provision of § 893.80, Stats., and the relationship to class action suits. I conclude, therefore, that neither case
precludes such consideration.
As indicated in
§ 893.80, Stats., failure to
comply with the express notice provisions of the statute will not bar the claim
against the City if the City had actual notice of the claims and was not
prejudiced by the claimants' failure to comply with the express notice
provisions of the statute.
Based on a review of the
record, I conclude that the City did have actual notice of the claims and was
not prejudiced by the failure of the unnamed class members to file individual
notices. The record establishes the
following facts. As reported cases of
illness spread throughout the metropolitan area, the City began to investigate
the causes of the outbreak. In early
April, after tests on several individuals struck with the digestive illness
confirmed the presence of cryptosporidium, City of Milwaukee Mayor John O.
Norquist issued a boil advisory for any Milwaukee residents drinking or using
Milwaukee municipal water in food preparation.
The investigation
conducted by the City involved employees and agents of the City. The investigation revealed that there were
increases in the turbidity of treated water at the City's southern water
treatment plant from March 23, 1993, through April 9, 1993. Laboratory tests confirmed the presence of
cryptosporidium occysts in stool samples from several Milwaukee area
residents. Findings pointed to the
water supply as the likely source of the illnesses. The southern water treatment plant was temporarily closed. An article published in the New England Journal of Medicine
indicated that the contaminated water affected approximately 400,000 persons.
Based on the foregoing,
I conclude that the City had actual notice that: cryptosporidium had entered the water supply at the southern
filtration plant; a definable percentage of the population had been exposed to
the contaminated water; and approximately 400,000 persons became ill because of
the contaminated water. This knowledge
is reasonably sufficient to satisfy the dictates of the actual notice provision
of § 893.80, Stats. I further conclude that the City was not
prejudiced by the absence of individual notices of claims from each member of
the class. The City does not dispute
that it had actual notice or that it was not prejudiced. Instead, it argues that any information it
obtained from conducting its own investigation does not operate to satisfy the
notice requirements of the statute. The
City cites Felder v. Casey, 139 Wis.2d 614, 408 N.W.2d 19
(1987), cert. granted, 484 U.S. 942 (1987), reversed 487 U.S. 131
(1988), in support of this proposition.
I am not persuaded. In Felder,
our supreme court determined that the facts presented by Felder
did not support a finding of actual notice.
Id. at 630, 408 N.W.2d at 26. I do not interpret Felder to be a blanket holding
that whenever the City conducts its own investigation into an incident that the
information it gleans from the investigation can never satisfy the actual
notice provision of § 893.80. The
facts presented in the instant case are very different from those presented in Felder. Felder never filed any notice of claim to
put the City on notice that he intended to hold the City responsible for his
injuries. Id. The class in the instant case did file
notices with the City showing its intent to hold the City responsible. In addition, the facts in this case are
unique: as a result of contaminated
water supplied by the City, the Milwaukee area experienced a public health
crisis. Based on these factors, I would
reject the City's contention that any information it learned on its own cannot
be used to show that it had actual notice.
The purpose of the
notice requirement of § 893.80, Stats.,
to provide the City with an opportunity to properly investigate claims and
budget accordingly for settlement or litigation, was satisfied. See State Dep't of Natural
Resources v. City of Waukesha, 184 Wis.2d 178, 195, 515 N.W.2d 888,
894-95 (1994). The City not only
received notice of claims from thousands of individually named class members,
which indicated the class's intent to include all persons affected, but it also
conducted its own investigation, and determined the specific identity of
affected persons. Therefore, the
purpose of the notice provisions was fulfilled in this case. The City received notice of the size of the
potential class as well as the substantive claims that the class may raise. Under the facts and circumstances of this
case, the actual notice provision of the statute was satisfied.
B. Certification
Criteria.
The second issue in this
appeal is whether the trial court erroneously exercised its discretion in
certifying the consolidated cases as a class.
The City and General Chemical argue that the certification criteria were
not satisfied and, therefore, the trial court erred in its decision. The class argues that certification was
appropriate under the § 803.08, Stats., and class certification criteria.[9] The trial court ruled:
Whether or not certification shall be
granted rests in the sound discretion of the Court relying on Nolte and Schlosser. I have not put in the citations of the
cases. We are all familiar with them.
This
Court today, after rigorous analysis, decides that this unique lawsuit fits the
concept and intent embodied in Section 803.08 of the Wisconsin Statutes though
some tailoring is probable as the case progresses.
Having
reviewed the briefs so competently provided, the arguments made and the
pleadings on file, and acknowledging the appropriate concerns ably presented by
the City defendants, this Court conditionally certifies as a class action
against the City defendants the cases of Markweise and Gaines, in each of their
substantive complaints, defining the class as all persons who suffered injury
as a result of the contamination with cryptosporidium of the water publicly
supplied by the City of Milwaukee which contamination occurred in March and
April of 1993.
The
Court appoints as class representatives the named plaintiffs in Markweise and
Gaines and further appoints Lawrence Walner and Associates, Limited and Cascino
Vaughn Law Offices, Limited to represent the class defined above naming
Lawrence Walner as lead counsel for the class.
This
Court is satisfied that the record before it is legally sufficient and more
than adequate upon which to base today's decision.
In
March and April of 1993, there was an outbreak of illness among the residents
of the City of Milwaukee, often characterized by a watery diarrhea. Other physical complications occurred
ranging from distress to death.
Some
of the City's water supply is received through a water intake sited in Lake Michigan
east of the pumping station at the east end of Texas Avenue in the Bay View
section of Milwaukee's southside--And Bay View is part of Milwaukee and not a
suburb, for counsel's consideration.
The water is pumped by the Texas pumping station to the Howard Avenue
purification plant. There the water is
purified and distributed to consumers for consumption and other uses. The intake, pumping station, purification
plant and the network of channeling and distribution pipes are owned, operated,
and maintained by the City of Milwaukee.
The City of Milwaukee charged its customers a fee for the water so
provided.
Increased
turbidity of the water processed at the Howard Avenue plant was noted toward
the end of March of 1993, and particularly from March 23rd through April 5th of
1993.
The
outbreak of illness within that same time frame led to a belief that the water
supply may have been the source of infection, a boil advisory was issued on
April 7th by the City, and the Howard Avenue plant temporarily closed on April
9th of 1993.
Cryptosporidium,
a water-borne parasite, was identified in the stool samples of some of the
persons who became ill. A study
reported in the New England Journal of Medicine concluded that the
massive outbreak of watery diarrhea was caused by cryptosporidium occysts which
apparently passed through the filtration system of the Howard Avenue
plant. That study estimated that more
than 400,000 people were affected during the outbreak but by limiting the
study's definition to watery diarrhea, the size of the affected population may
be underestimated.
The
City acknowledges that over 1500 persons have given notice of claim for damages
attributed to the cryptosporidium-tainted water, and counsel for the plaintiffs
in the cryptosporidium-related cases consolidated in this Court assert
representation of over 1400 persons.
The
complaints in the class action claim the injuries incurred by the
representative plaintiffs and the members of the class were incurred as a
result of the City's negligence, that the City failed to notify the plaintiffs
and members of the class that the water was, or was likely to become,
contaminated with cryptosporidium resulting in injury, that the City is liable
under the doctrine of strict liability, and that the City was liable to them
for breach of contract and breach of implied warranty.
Section
803.08 of the Wisconsin Statutes provides:
“When the question before the Court is one of a common or general
interest of many persons, or when the parties are very numerous and it may be
impractical to bring them all before the Court, one or more may sue or defend
for the benefit of the whole.” That
concept being denoted a class action.
Although
the reported Wisconsin cases do not factually approach the circumstances
presented in the present lawsuit, much guidance is provided. The prerequisites for class action [are]
commonality, representation, and impracticability.
Commonality
is tested by determining whether all members of the class desire the same
outcome of the suit that the alleged representatives of the class desire. Mercury Records. All interests need not be shared but,
rather, a common interest must exist.
Both Harris and Jones discuss that. Cases decided understanding the Federal Rule
which is not controlling, but instructive, discuss the concepts of predominance
and superiority.
In
the instant case, the claims of the representative plaintiffs and unnamed
members of the class rests upon the same theories of law and the same set of
facts as respects liability -- was the City negligent in testing or treating
the water, in failing to warn the possible contamination or in failing to
inspect a drainage connection pipe at a certain facility? Did the City break its contractual
obligations to consumers?
An
affirmative response is the clear and only goal of the plaintiffs and the
class. No animosity or cross purpose
exists between or among them.
There
are obstacles. Causation, individual
damages, subrogation, possible contributory negligence are advanced by the City
as mitigating against commonality, and these are not ignored by the Court. However, in my judgment, the alleged
contamination of the water supply provided by the City is a predominant issue
that supersedes any individual variance as to causality or damages.
The
concept of de minimis is wrongfully argued by the City since one value to be
accomplished by class certification is to provide access to the courts for those
due to the size of their claim are unable practically or financially to advance
their cause in any other manner.
Pre-existing conditions do not intervene to prevent recovery since by
definition they pre-exist the alleged wrong.
They would be viable in damage determinations.
Looking
at the case before us, it is clear that the liability issue predominates and
that the class approved provides a superior method of resolution.
Consider,
for example, the expense to litigants, the expenditure of court time, and the
delay forced upon other litigants if 1500 cases at a minimum and an indefinable
at present but potentially large number of others were to be tried separately.
The
retrial over and over of the same factual issues, the repeated testimony of expert
witnesses, and the possibility of inconsistent verdicts make individual
resolution of claims an administrative and judicial logjam with delay and
uncertainty overwhelming the process.
As
to representation, two considerations are paramount--whether the representative
plaintiffs clearly share a consistent and non-antagonistic interest with the
unnamed class members, and whether counsel for the representative plaintiffs
and class are competent and will fairly represent the interest of all
plaintiffs.
A
reading of the complaints demonstrates unequivocally that the representative
plaintiffs seek to hold the City liable for the damages each sustained by use
or consumption of the crypto-bearing water, exactly the interest of the unnamed
class members.
There
is and can be no animosity between or among those representative plaintiffs and
the class.
....
[T]he
choice of counsel by a host of claimants convinces me of the ability of
selected counsel to fairly and competently represent the claim as well as the
representative -- as the claim -- of the class as well as the representative
plaintiffs.
....
Impracticability
is essentially an issue of numerosity.
Suffice it to say whether we consider 1500, 15,000 or 150,000, the
number of claimants clearly exceeds any number ever found by any Court to be
insufficient for class action.
Class
certification is not a panacea operating to necessarily resolve all issues for
all time in a single proceeding. It is,
however, highly praised by some as said by the respected Professor Arthur
Miller of Harvard back in 1987.
“Class
actions have proven to be the most effective legal technique for avoiding
piecemeal litigation and preserving legal resources.”
....
It
is understood that there will be manageability problems with a case of this
magnitude proceeding in the class mode, but the alternative would be particularly
oppressive and destructive of the goals of our system of justice.
In
addition to being a more inexpensive, efficient, and inclusive method of claims
adjudication, there is the additional benefit to defendant that a finality of
litigation will be accomplished, even perhaps through exoneration allowing that
though opt outs would be separately resolved, they would be known.
The
class certification also lends itself as a tool toward settlement, a valid and
desirable result in all litigation....
....
It
must be remembered that the Court retains the authority through the length of
this litigation to amend the parties, to redefine the class, to establish
subclasses, to join or bifurcate issues or causes, and to ultimately control
disposition.
Innovative
and imaginative techniques for resolution will not be avoided by this court
simply because they are innovative or imaginative. This Court will throughout this matter maintain a focus on due
process and fairness to all.
....
It is the Court's decision, for all the reasons
set forth, that certification of the class defined above be granted ....
This court's review of a
trial court's decision that a class action is appropriate is limited to
determining whether the trial court erroneously exercised its discretion. See Mercury Records
Productions, Inc. v. Economic Consultants, Inc., 91 Wis.2d 482,
491, 283 N.W.2d 613, 618 (Ct. App. 1979).
The trial court did not erroneously exercise its discretion if it
addressed the pertinent facts, applied the proper law, and reached a rational
conclusion, see Hartung v. Hartung, 102 Wis.2d 58, 66, 306
N.W.2d 16, 20 (1981), even if this court might reach a different
conclusion. I emphasize that this
standard restricts this court's review to determining only whether the trial
court erroneously exercised its discretion, and this court cannot decide the
substantive merits of the trial court's decision.
In order to maintain a
class action, three criteria must be satisfied. Nolte v. Michels Pipeline Constr. Inc., 83 Wis.2d
171, 176, 265 N.W.2d 482, 485 (1978).
The criteria are: (1) the
named parties must have a common interest with the persons represented;
(2) the named parties must be able to fairly represent the common interest
so that the issue may be fairly and honestly tried; and (3) it is
impracticable to bring all the interested persons before the court. Id. If these three criteria are met, the trial court must also
balance the benefits to be gained by class certification against the burdens
inherent in a class action. Schlosser v.
Allis-Chalmers Corp., 86 Wis.2d 226, 233-34, 271 N.W.2d 879, 883
(1978).
As is evident by the
excerpt quoted above from the trial court's decision, the trial court addressed
each of these factors at length, and employed a balancing of benefits versus
burdens. The trial court found that all
of the members of the proposed class satisfied the common interest criteria
because each desired the same outcome—that the defendants be found liable for
the damages caused by the contamination of the water supply. Finding that the common interest factor was
satisfied did not constitute an erroneous exercise of discretion.
“The test for common
interest is whether all members of the purported class desire the same outcome
of the suit that the alleged representatives of the class desire.” Mercury Records, 91 Wis.2d at
490, 283 N.W.2d at 617. The trial
court's finding satisfied this test. I
am not persuaded by the defendants' arguments that the differences in causality
and damage issues preclude a finding of commonality. Although the variances of cause and damage issues in this case
may eventually pose some difficulties in its ultimate resolution, these issues
do not alter the finding of the common interest criteria. The trial court indicated a willingness to
employ innovative and imaginative techniques to address potential hurdles and I
would not prematurely usurp the trial court's attempt to do so. The fact that such hurdles may occur
somewhere during the litigation does not make the trial court's finding that
all purported class members share a common interest erroneous. Further, the trial court determined that the
issue of common interest was predominant over the other concerns.
The trial court also
addressed the second criteria—whether the named class members fairly and
adequately represent the interest of the unnamed class members. In addressing this factor, the trial court
again found that this criteria was satisfied because the named members and the
unnamed members are aligned in interest and no animosity exists between the two
groups. The trial court also found the
attorneys representing the class to be competent and capable of providing
proper representation. This is a proper
analysis. See Goldwater v.
Alston & Bird, 116 F.R.D. 342, 353 (S.D. Ill. 1987) (adequate
representation factor is satisfied if the named plaintiffs' interests are not
antagonistic to the class). There is
sufficient evidence in the record to uphold the trial court's determination and
the defendants have failed to present this court with any evidence to show that
the named members cannot adequately represent the unnamed members. Lewis v. Curtis, 671 F.2d 779,
788 (3d Cir.) (it is the defendant's burden to establish that representation is
inadequate), cert. denied, 459 U.S. 880 (1982). Further, the trial court conditionally
certified this class, acknowledged that potential problems may arise during the
course of the litigation, and recognized its authority to take any action
necessary to address and resolve problems that arise.
The record also
demonstrates that the trial court aptly addressed the third
criteria—impracticability. The trial
court addressed the significant burdens and problems that would occur if the
thousands of cases at issue were allowed to proceed independently. Specifically, the trial court ruled: “Suffice it to say whether we consider 1500,
15,000 or 150,000, the number of claimants clearly exceeds any number ever found
by any Court to be insufficient for class action.” After addressing these considerations, the trial court determined
that the class action would be the most effective legal technique for the
cryptosporidium claims. The defendants'
concerns regarding this factor again focus on the potential problems regarding
the variances among causality and damages.
My response here is the same as indicated above: I would not prematurely usurp from the trial
court the chance to successfully resolve these issues within the context of the
class action and, therefore, these potential problems do not lead me to
conclude that the trial court's determination of this factor was erroneous.
Finally, the trial court
engaged in a balancing of the benefits versus the burdens. It noted that there may be some
manageability problems, but reasoned that these problems may be resolved
utilizing imaginative and innovative techniques and that the alternative “would
be particularly oppressive and destructive of the goals of our justice
system.” I agree.
In reviewing the trial
court's discretionary determination to conditionally certify the class, I
cannot conclude at this point that the trial court's discretionary
determination was erroneous. The trial
court's certification was conditional, and it committed itself to
attempting to make the class action work.
Although it is conceivable that the trial court may not be able to
fashion a workable method to address the issues raised by the defendants, that
potential hurdle should not prevent the trial court from making an effort to do
so. Moreover, the trial court's
commitment to make such an attempt furthers the purposes of a class action to
simplify the lawsuit, avoid multiplicity of litigation, provide access to
efficient justice to class members with nominal claims, and to avoid
unnecessary prophylactic filing. General
Chemical's concerns about its right to a jury trial can be addressed by the
trial court's due diligence as the case proceeds to resolution. By allowing the trial court to exercise its
powers of discretion as delineated in its motion decision, Wisconsin's rich
tradition of allowing its citizens reasonable access to judicial process would
neither be jeopardized nor abused.
Thus, it is not necessary to reverse the trial court's certification
decision on that basis.
I would affirm the trial
court's order and, therefore, respectfully dissent.
[1] Rule 803.08, Stats., provides:
Class actions.
When the question before the court is one of a common or general
interest of many persons or when the parties are very numerous and it may be
impracticable to bring them all before the court, one or more may sue or defend
for the benefit of the whole.
Prior to the trial court's certification order, the actions were consolidated on the City's motion. See Rule 805.05, Stats.
[2] Section 893.80, Stats., provides in full:
Claims against governmental
bodies or officers, agents or employes; notice of injury; limitation of damages
and suits. (1) Except
as provided in subs. (1m) and (1p), no action may be brought or maintained
against any volunteer fire company organized under ch. 213, political
corporation, governmental subdivision or agency thereof nor against any
officer, official, agent or employe of the corporation, subdivision or agency
for acts done in their official capacity or in the course of their agency or
employment upon a claim or cause of action unless:
(a) Within
120 days after the happening of the event giving rise to the claim, written
notice of the circumstances of the claim signed by the party, agent or attorney
is served on the volunteer fire company, political corporation, governmental subdivision
or agency and on the officer, official, agent or employe under s. 801.11. Failure to give the requisite notice shall
not bar action on the claim if the fire company, corporation, subdivision or
agency had actual notice of the claim and the claimant shows to the
satisfaction of the court that the delay or failure to give the requisite
notice has not been prejudicial to the defendant fire company, corporation,
subdivision or agency or to the defendant officer, official, agent or employe;
and
(b) A
claim containing the address of the claimant and an itemized statement of the
relief sought is presented to the appropriate clerk or person who performs the
duties of a clerk or secretary for the defendant fire company, corporation,
subdivision or agency and the claim is disallowed. Failure of the appropriate body to disallow within 120 days after
presentation is a disallowance. Notice
of disallowance shall be served on the claimant by registered or certified mail
and the receipt therefor, signed by the claimant, or the returned registered
letter, shall be proof of service. No
action on a claim against any defendant fire company, corporation, subdivision
or agency nor against any defendant officer, official, agent or employe, may be
brought after 6 months from the date of service of the notice, and the notice
shall contain a statement to that effect.
(1m) With regard to a
claim to recover damages for medical malpractice, the time period under sub.
(1) (a) shall be 180 days after discovery of the injury or the date on which,
in the exercise of reasonable diligence, the injury should have been
discovered, rather than 120 days after the happening of the event giving rise
to the claim.
(1p) No action may be
brought or maintained with regard to a claim to recover damages against any
political corporation, governmental subdivision or agency thereof for the
negligent inspection of any property, premises, place of employment or
construction site for the violation of any statute, rule, ordinance or health
and safety code unless the alleged negligent act or omission occurred after
November 30, 1976. In any such action,
the time period under sub. (1) (a) shall be one year after discovery of the
negligent act or omission or the date on which, in the exercise of reasonable
diligence the negligent act or omission should have been discovered.
(1t) Only one action for
property damage may be brought under sub. (1p) by 2 or more joint tenants of a
single‑family dwelling.
(2) The claimant may
accept payment of a portion of the claim without waiving the right to recover
the balance. No interest may be
recovered on any portion of a claim after an order is drawn and made available
to the claimant. If in an action the
claimant recovers a greater sum than was allowed, the claimant shall recover
costs, otherwise the defendant shall recover costs.
(3) The amount
recoverable by any person for any damages, injuries or death in any action
founded on tort against any volunteer fire company organized under ch. 213,
political corporation, governmental subdivision or agency thereof and against
their officers, officials, agents or employes for acts done in their official
capacity or in the course of their agency or employment, whether proceeded
against jointly or severally, shall not exceed $50,000, except that the amount
recoverable shall not exceed $25,000 in any such action against a volunteer
fire company organized under ch. 213 or its officers, officials, agents or
employes. If the volunteer fire company
is part of a combined fire department, the $25,000 limit still applies to
actions against the volunteer fire company or its officers, officials, agents
or employes. No punitive damages may be
allowed or recoverable in any such action under this subsection.
(4) No suit may be
brought against any volunteer fire company organized under ch. 213, political
corporation, governmental subdivision or any agency thereof for the intentional
torts of its officers, officials, agents or employes nor may any suit be
brought against such corporation, subdivision or agency or volunteer fire
company or against its officers, officials, agents or employes for acts done in
the exercise of legislative, quasi‑legislative, judicial or quasi‑judicial
functions.
(5) Except as provided in
this subsection, the provisions and limitations of this section shall be
exclusive and shall apply to all claims against a volunteer fire company
organized under ch. 213, political corporation, governmental subdivision or
agency or against any officer, official, agent or employe thereof for acts done
in an official capacity or the course of his or her agency or employment. When rights or remedies are provided by any
other statute against any political corporation, governmental subdivision or
agency or any officer, official, agent or employe thereof for injury, damage or
death, such statute shall apply and the limitations in sub. (3) shall be
inapplicable.
(6) A 1st class city, its
officers, officials, agents or employes shall not be liable for any claim for
damages to person or property arising out of any act or omission in providing
or failing to provide police services upon the interstate freeway system or in
or upon any grounds, building or other improvement owned by a county and
designated for stadium or airport purposes and appurtenant uses.
(7) No suit may be brought against any city, town or village or any governmental subdivision or agency thereof or against any officer, official, agent or employe of any of those entities who, in good faith, acts or fails to act to provide a notice to a property owner that a public nuisance under s. 823.113 (1) exists.
[3] In Elkhorn Area School Dist., notice by the East Troy School District that property for which it received tax revenues was no longer within its taxing jurisdiction but had been transferred to the Elkhorn Area School District, and that subsequent to the property's transfer the East Troy Community School District “unwittingly accepted property tax revenues” to which it was not entitled, did not give the East Troy Community School District “actual knowledge” of the Elkhorn Area School District's claim to the diverted tax revenues. Elkhorn Area School Dist. v. East Troy Community School Dist., 110 Wis.2d 1, 5–6, 327 N.W.2d 206, 209 (Ct. App. 1982). Cf. Medley v. City of Milwaukee, 969 F.2d 312, 320 (7th Cir. 1992) (“actual notice” requirement of § 893.80(1)(a), Stats., requires that the government entity not only know that a potential claimant might be aggrieved but also the claim for relief); Orthmann v. Apple River Campground, Inc., 757 F.2d 909, 911 (7th Cir. 1985) (filing of lawsuit against village by claimant gave village “actual notice” of claim).
[4] The plaintiffs' brief asserts that the City knows: (1) that “[a] definable percentage of the population had been exposed to cryptosporidium,” and (2) that “[a]pproximately 400,000 people, perhaps more, became ill as a result of exposure to cryptosporidium in the water supply.”
[5] Section 893.80(1m), Stats., provides:
(1m) With regard to a claim to recover damages for medical malpractice, the time period under sub. (1) (a) shall be 180 days after discovery of the injury or the date on which, in the exercise of reasonable diligence, the injury should have been discovered, rather than 120 days after the happening of the event giving rise to the claim.
[6] The legislature's
Prefatory Note to the legislation that created § 893.80(1p), Stats., explained the intent of the
legislation:
In
Coffey v. City of Milwaukee, 74 Wis.2d 526, 247 N.W.2d 132 (1976), the
Wisconsin supreme court first indicated that a municipality could be held
liable to injured parties for negligent inspections conducted by municipal
employes.
This
bill establishes a statute of limitations for tort actions against certain
governmental bodies for negligent inspections by providing that such actions
must be commenced within one year after the date the negligence was discovered
or, in the exercise of reasonable diligence, should have been discovered.
The
supreme court, in Coffey, did not specifically rule that potential
municipal liability resulting from negligent inspections would apply only to
inspections undertaken after the date of the Coffey decision. Therefore, the bill also provides that
governmental bodies will not be liable for damages if the negligent inspection
occurred on or before November 30, 1976 (the date of the Coffey
decision).
Prefatory Note, 1987 Wis. Act 377, 2 Wisconsin Session Laws at 1347 (1988).
[7] But see contra 7B Charles A. Wright, et al., Federal Practice and Procedure § 1801 at 461 (2d ed. 1994) (citing no authority); Rodriguez v. Banco Central, 790 F.2d 172, 180 (1st Cir. 1986) (adopting in dictum position of Wright, Miller, Marcus treatise); cf. Union Carbide and Carbon Corp. v. Nisley, 300 F.2d 561, 589 (10th Cir. 1961) (permitting special master to determine damages for individual members of class does not violate Seventh Amendment when jury determined liability and liability formulae).
[8] Both cases involved
an individual who filed a notice of claim on his behalf and on behalf of all
members of the class. Hicks v.
Milwaukee County, 71 Wis.2d 401, 407, 238 N.W.2d 509, 513 (1976); Carpenter v.
Racine Comm'n of Public Works, 115 Wis.2d 211, 214, 339 N.W.2d 608, 609
(Ct. App. 1983), cert. denied, 466 U.S. 904 (1984). Both cases concluded that the class could
not be maintained because the notices of claim, purportedly filed on behalf of
the entire class failed to meet the minimum requirements: (1) identify the claimants; and
(2) show that the named individual is authorized to act on behalf of all
the claimants. Hicks, 71
Wis.2d at 407, 238 N.W.2d at 514; Carpenter, 115 Wis.2d at
216-17, 339 N.W.2d at 610.
[9] Wisconsin's class
action statute, § 803.08, Stats.,
provides:
When the question before the court is one of a common or general interest of many persons or when the parties are very numerous and it may be impracticable to bring them all before the court, one or more may sue or defend for the benefit of the whole.